These range from make-up trial stands, to racks for CDs and branded store stands such as those used in Benetton, Marks and Spencer, Levi, Gucci, Stefanel, which have to be the same worldwide.

Every time a new `corporate image' is thought up by one of these big names, they send out newly designed items from the shop. These can be anything from the signs for the front of the shop to the coat hangers, and posters and racks.

The owner of the franchised shop has to allocate a value for Customs officials on their entry form or the items will simply not be cleared.

So they end up paying large amounts of tax on items that are essentially free goods.

"I can end up paying 22.25 percent on a new magazine rack,'' said Mr.

Grundmuller. "Abolishing this tax would help our overheads and would improve merchandising.'' Mr. Smith added: "We are often criticised for not having up-to-date layouts in our shops. While we will never be like an American mall, removing this tax would help.'' Stuart Joblin, owner of Makin Waves, said that the cost of fitting his shop was so prohibitively expensive because of the tax when he started out, he decided to do it himself.

"Me, my father and my stepfather all got together and put the shop together.

When you are starting out, you just do not have that kind of money, and to have to pay taxes on it is too much.'' David Hamshere, president of the Tess group, said that his businesses had been hit hard by the taxes. He said: "When we re-fitted Astwood and Gunn it cost $85,000 on duty for the refitting.

"We also have a shop in the Hamilton Princess. The hotel pays no tax on its re-fittings but we do. So while we are paying tax on re-fitting across the hall, they pay nothing.

"I have revamped the Marks and Spencer store and had to pay the charge on the fixtures. I thought this would last me for ten years, but I have just heard that in London they have decided to change the way the shop looks and go minimalist.

"And if I want to keep on with Marks and Spencer, I have to go along with their new look. And pay taxes on the fittings.'' Shop owners say that the tax is unfair and that the abolition of it would lead to more stores renovating their premises more often.

BUSINESS BUC